Property stamp duty revenue Rs 1 lakh crore across 28 states

According to a Motilal Oswal Financial Services examination of official statistics, the cumulative income collection from stamp duty and registration charges (SD&RCs) for all Indian states was Rs 1.21 lakh crore during the first eight months of the financial year 2022 (April-November 2021).

For the financial year 2021, the total SD & RC collection was Rs 1.27 lakh crore.

In the first eight months of FY22, 28 states acquired an average monthly SD&RC of Rs 12,500 crore, somewhat less than the Rs 12,800 crore anticipated by the pre-Covid growth pattern (FY19–FY20). The average was, however, higher than the monthly average of Rs 10,600 reported in FY21, according to the stock brokerage firm’s research.

Maharashtra had the largest collection of Rs 17,100 crore, accounting for 17.1% of the total revenue collected in the first eight months of FY22. During that time, Uttar Pradesh, Tamil Nadu, and Karnataka collected Rs 12,800 crore, Rs 8,700 crore, and Rs 8,400 crore, respectively.

“The residential real estate sector has bounced back strongly since 2HFY21 and it continues to perform well in FY22. In fact, it is doing better than anticipated. We hope that the government provides some incentives for this sector in the upcoming Budget. Considering its massive forward and backward linkages to the real economy, it has the potential to boost GDP growth substantially,” said Nikhil Gupta, Chief Economist, Motilal Oswal Financial Services (MOFSL).

According to the report, Telangana, Sikkim, and Jammu & Kashmir are the only states whose revenue collection in the first eight months of FY22 has exceeded revenue collected from SD & RCs in FY21. Telangana collected Rs 7,000 crore in SD & RCs during the year, compared to Rs 5,200 crore in FY ’21 and Rs 6,700 crore in FY20. This led to a rise in the overall collection percentage from 4% in FY21 to 7% in FY22.